NIO Inc.'s stock plummeted by 8.93% on September 12, 2024, as Chinese electric vehicle (EV) makers faced a potential headwind from the government's recommendation to protect advanced EV technology within the nation's borders.
According to reports, the Chinese government has issued a recommendation that automakers ensure key EV technology stays in the country. Sources indicate that the government is encouraging Chinese automakers to export "knock-down" kits to their foreign plants, meaning that all critical parts would be produced domestically before being sent for final assembly abroad.
This move by the Chinese government raised concerns about potential limitations or challenges for Chinese EV companies like NIO in exporting their advanced EV technology and products to international markets. The recommendation was seen as a potential risk factor that could impact the companies' growth prospects and competitiveness in the global EV market.
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